China GDP in focus for week ahead in Asia

LOS ANGELES (MarketWatch) — After getting a look at China’s inflation picture this past week, markets will turn to examine that country’s economic growth this coming Tuesday, as Beijing releases a stack of data points, including gross domestic product.

With the Chinese government having spent the last quarter extending its efforts to cool the economy and contain inflation, economists expect GDP growth for the period to register further mild slowing. Read story on Chinese Q2 GDP.

A Dow Jones Newswires poll put the median expectation for third-quarter growth at 9.2%, which would mark an easing from 9.5% in the second quarter and 9.7% in the first quarter.

While some market participants are skeptical of Chinese government statistics, the results tend to move markets, both in China and its top trading partners, especially in Asia.

Among other data due out Tuesday are September fixed-asset investment – a key gauge of capital spending in China – and industrial production. A Dow Jones Newswires poll tips industrial production for last month to print at 13.3%, compared to August’s 13.5% result.

Elsewhere in Asia, Australia’s central bank is set to release minutes from its policy meeting earlier this month.

At that meeting, the Reserve Bank of Australia held its benchmark cash rate steady at 4.75% but also hinted at the possibility of future interest-rate cuts if the economy flags. Read more on RBA Oct. 4 rate decision.

Analysts and investors will watch the meeting minutes to see just how close RBA Gov. Glenn Stevens and his colleagues came to a rate-cut at the previous meeting. That, combined with quarterly inflation figures due out at the end of this month, will guide expectations on whether the RBA cuts rates at its November meeting.

Also next week, the Bank of Thailand is slated to hand down an interest-rate decision Wednesday. The country has been hit by severe, deadly flooding, with Bank of Thailand Gov. Prasarn Trairatvorakul reportedly estimating the damage so far at between $1.9 billion and $2.6 billion.

The markets will be watching to see whether the catastrophe prompts Thailand to follow in the steps of Indonesia, which issued a surprise interest-rate cut this past week

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.